com/story/understanding-the-wash-sale-rules-2015-03-02) wash sale
rule kicks in if an investor repurchases the same or a substantially identical investment within 30 days before or 30 days after selling the original investment at a loss.
Typically, if you acquire a bond with a different issuer, maturity, or coupon rate, your bond swap won't be considered a wash sale
This new tool will enable investment managers to find out which previously sold securities, if replaced through a purchase transaction, would result in a wash sale
An opposite and less desirable result that might occur because of a wash sale
is the conversion of a short-term capital loss into a long-term capital loss.
If the client follows a "buy-and-hold" strategy--which is consistent with the professional money manager's belief in not selling during market downturns--the goal is to sell these shares without triggering the IRC section 1091 wash sale
When a loss from a wash sale
is disallowed, the deferred loss is added to the basis of the newly purchased securities.
A wash sale
is the sale (disposition) of a security at a loss and the acquisition of a substantially identical security within a period beginning 30 days before and ending 30 days after the date of sale.
Not only can the Wash Sale
Rule prevent you from taking a loss, but failing to account for wash sales
can result in costly errors in cost basis calculations for both the stock sold at a loss and the security that triggered the wash sale
," said Conlon.
Beware of the Wash Sales
Trap (see sidebar, Page 18).
1091 at the end of 1988 to make it clear that purposes of the wash sale
rule, options can he substantially identical to stock.
Short sales are subject to special tax rules that affect holding period and short-term/long-term gain/loss determinations and special wash sale
Employees of the Development Bank of the Philippines (DBP) on Friday filed a graft complaint in the Office of the Ombudsman against 14 senior executives of the state-owned bank for allegedly shortchanging the government in the wash sale